Paxos and MoonPay Stablecoin Issuer and Payment Provider Each Cut Workforce by Nearly 20 Focus on Core Products
The Block reported that stablecoin issuer Paxos revealed in an email sent to internal employees yesterday (12) that it will be conducting layoffs of up to 20%; meanwhile, payment provider MoonPay also announced layoffs of 10% last week. Both are recent examples of crypto companies claiming to be in good financial standing but still needing to downsize.
In an undisclosed email, Paxos announced the reduction of 65 employees, approximately 20% of its total workforce, which currently stands at around 200 to 300 people. Paxos co-founder and CEO Charles ‘Chad’ Cascarilla stated, “We will be laying off 20% of our employees to better position Paxos to capture the significant opportunities in tokenized assets (RWA) and stablecoins. He emphasized prioritizing the company’s core products while reducing the priority of other ancillary products.
Additionally, Bloomberg reported that Paxos also plans to reduce its securities settlement services. On the other hand, MoonPay, a startup payment provider actively involved in the Web3 space, cited operational cost increases and lower-than-expected profits as reasons for the 10% layoffs.
MoonPay CEO Ivan Soto-Wright wrote in a letter, “We are implementing a series of job cuts and structural adjustments that will affect around 10% of our employees.” According to LinkedIn data, approximately 30 people are impacted by this round of layoffs. Soto-Wright acknowledged that over-investment in certain areas and regions led to increased operational costs, taking responsibility as CEO to address the issue.
As a favored partner of crypto payment companies, Paxos currently offers various stablecoin products, including the approximately $400 million PayPal USD (PYUSD), $430 million Pax Gold (PAXG), and $145 million Pax Dollar (USDP). Recently, the company launched Lift Dollar (USDL), a yield-bearing stablecoin based on Ethereum.
On the other hand, MoonPay announced last month the launch of a Web3 tool platform to assist large brands like Adidas, Gucci, and Puma in creating communities, fostering loyalty, and generating new revenue streams. MoonPay will also open PayPal payment functionality in the EU and the UK, allowing local users to purchase cryptocurrencies on the platform using their PayPal accounts.
